Have you heard about the minimum energy efficiency standard affecting landlords and property owners? Here are the facts...
Under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, it will be unlawful to let domestic and non-domestic properties with an Energy Performance Certificate (EPC) rating of F or G from April 2018.
The legislation was put into place to meet obligations to improve energy efficiency in inefficient properties under the Energy Act 2011, and to meet UK targets of CO2 reduction.
From the 1st April 2018, the minimum energy efficiency standard will apply to landlords / property owners upon the granting of a lease to a new tenant and lease renewals to existing tenants, unless exemptions apply.
In order to comply, all properties must meet the minimum energy efficiency standard by undertaking permissible, appropriate and cost-effective energy efficiency improvements to meet the minimum EPC rating of E or above. However, there are safeguards in place that allow restrictions on making improvements.
Fines can be enforced, dependent on the type of infringement and the length of MEES non-compliance.
|Domestic Properties||Non Domestic Properties|
|£1,000 - £5,000||£5,000 - £150,000|
Properties which are let on tenancies of more than 99 years and less than six months are excused, along with any properties which are exempt from having an EPC. Assured tenancies under the Housing Act 1988, and regulated tenancies, such as housing associations are also exempt for domestic properties.
Landlords may be exempt from the minimum energy efficiency standard when:
The minimum energy efficiency standard will apply to all privately rented domestic properties within the scope of the regulations from the 1st April 2020, followed by non-domestic in 2023.
Exemptions must be registered with the PRS Exemptions Register, which will be available for domestic and non-domestic properties from October 2017. Please be aware, there are also time constraints associated with exemptions.
Since 2016, tenants have had the right to request reasonable and cost-effective energy efficiency improvements to their rental properties. Landlords cannot unreasonably refuse consent, but are protected against unfeasible measures. A residential tenant may also raise a case with the First-Tier Tribunal General Regulatory Chamber if they feel a landlord is non-compliant with the minimum energy efficiency standard.
If you are an active DEA or NDEA member and have clients who have interests in the privately rented sector, inform them about the regulations and the Minimum Energy Efficiency Standards. Speak to our technical team on 01977 665 420 for advice.